Morris Hospital

“Question 8a minutes and agenda of the full board of morris hospital are maintained. The full board meets every month. Meeting dates applicable to 2013 are as follows: 01/28/2013 02/25/2013 03/25/2013 05/20/2013 06/24/2013 07/17/2013 07/22/2013 08/26/2013 09/30/2013 10/28/2013 11/25/2013 12/16/2013 part vi, section a, question 8b minutes and agenda of the following committees of morris hospital have been and are maintained. Executive/finance/compensation committee 01/21/2013 02/07/2013 02/19/2013 02/20/2013 03/11/2013 03/14/2013 03/18/2013 05/13/2013 05/17/2013 06/17/2013 07/10/2013 07/22/2013 08/19/2013 08/29/2013 09/19/2013 10/21/2013 11/18/2013 12/04/2013 12/16/2013 long range planning committee 04/04/2013 06/26/2013 07/03/2013 07/10/2013 08/08/2013 09/26/2013 10/23/2013 12/02/2013 pi/quality committee 01/17/2013 02/18/2013 03/18/2013 04/18/2013 06/17/2013 07/15/2013 08/19/2013 09/16/2013 10/21/2013 11/18/2013 12/16/2013 recruiting/retention committee 03/05/2013 03/26/2013 04/23/2013 05/30/2013 08/15/2013”

“Question 11b a draft of the 990, as prepared by bdo usa, llp, was reviewed by members of the finance committee along with the cfo and accounting manager of morris hospital. A joint special board meeting of the morris hospital, morris hospital foundation and morris hospital auxiliary boards was held to provide a formal presentation of the final 990's of each respective organization prior to the filing. Question 12b directors, officers, members of the board, key agents, and key employees are required to complete a statement which requires the following: (1) disclose for in the prior two years, any products or services that he/she may have provided personally to morris hospital and healthcare centers or any of its affiliates other than in his/her capacity as a director, ciommittee member, officer, or other senior management position. (2) disclose for in the prior two years, any direct or indirect ownership interest that he/she may have in any company with which morris hospital and healthcare centers or any of its affiliates conducts business, including the purchase or sale of products and services (except ownership of less than 1% interest in a publicly traded company) (3) disclose for in the prior two years, whether he/she may have served as a board member, employee , consultant or in any other capacity to a business or company that provides products or services to morris hospital and healthcare centers or any of its affiliates (4) disclose for in the prior two years, whether he/she has been involved in any legal or administrative proceeding, real estate or other business transaction, including the purchase of goods or services, involving morris hospital and healthcare centers or any of its affiliates either personally or through a company in which he/she has a direct or indirect ownership or for which he/she has served as a board member, employee, consultant or in any other capacity (5) disclose for in the prior two years, whether he/she has served as a board member, employee, consultant or in any other capacity with respect to a business or company that provides servicces in competition with morris hospital and healthcare centers or any of its affiliates. Competition meaning providing a product or service which is the same as (materially similiar to) a product or service provided by morris hospital and healthcare centers or any of its affiliates same geographic area, or to patients in the same geograhpic area. (6) disclose for in the prior two years, whether he/she has had any employment , appointment or other relationship with a government entity having regulatory authority over a morris hospital and healthcare centers or any of its affiliates. (7) disclose for in the prior two years, whether to the best of his/her knowledge, any member of his/her immediate family have personally, or company with which that individual had a ownership,employment, consulting or board relationship, provided goods or services to, or otherwise conducted a business relationship with morris hospital and healthcare centers or any of its affiliates. (8) disclose for in the prior year, whether he/she has had any member of his/her immediate family employed by morris hospital and healthcare centers or any of its affiliates. (immediate family members would include spouse, ancestors, children, grandchildren, great-grand children, siblings (whether by whole or half-blood), and the spouses of children, grandchildren, great-ghrand children and siblings). (9) disclose for in the prior two years, whether he/she has been aware of any other events, transactions, arrangements or other situations that have occurred or that may occur in the future, including pending or contemplated transactions or arrangements, that could be perceived as a conflict or duality of interest or that believe should be examined by morris hopsital and healthcare center's board of directors in accordance with the terms and intent of the morris hospital and healthcare center's conflicts and”

“The mission of Morris Hospital & Healthcare Centers is to improve the health of area residents. This is the focal point that steers strategy and decision making and gives meaning and focus to staff as they go about their daily work. As long as our actions and activities are focused on improving the health of area residents, we know that we are doing what's right for our community. Delivering quality patient care remains the highest priority at Morris Hospital & Healthcare Centers, as event by a number of significant accomplishments in 2013 including the hospital's re-designation as a Level II perinatal care provider by the Illinois Department of Public Health. This means Morris Hospital has the necessary qualifications to care for women who have the potential or likelihood for complicated or high risk deliveries, as well as newborns who may require specialized services. The hospital also achieved accreditation as a Certified Diabetes Center from the American Association of Diabetes Educators for the first time, verification that the hospital uses an approved diabetes education curriculum that meets a high standard of care. Morris Hospital added a number of new services in 2013, including a Phase 3 Pulmonary Rehabilitation program for individuals who want to continue exercising after the completion of Phase 2 Pulmonary Rehab. Morris Hospital also opened a new cardiology practice, Morris Hospital Cardiovascular Specialists, with two cardiologists and two office locations. In addition, Morris Hospital and Toussaint Obstetrics completed an affiliation agreement that resulted in the creation of Morris Hospital Obstetrics & Gynecology Specialists, a new Morris Hospital service providing obstetrician/gynecologists at office locations in Channahon, Morris and Ottawa. Another service expansion in 2013 included the opening of outpatient physical therapy at the Ridge Road Campus, complementing the availability of physical, occupational and speech therapy at the Diagnostic & Rehabilitative Center in Morris. Fourteen new physicians joined the medical staff in 2013, including two immediate care physicians, three cardiologists, two orthopedic spine surgeons, an emergency medicine physician, neurologist, obstetrician/gynecologist, hospitalist, psychiatrist, rheumatologist and allergist. In late 2013, Morris Hospital began renovation of an 11,888 square foot existing facility in Yorkville for the purpose of offering immediate care, laboratory, and diagnostic imaging services in the spring of 2014, followed by primary care and physician specialty offerings later in 2014. In 2013, Kimberly Landers became the Vice President of Patient Care at Morris Hospital & Healthcare Centers, succeeding Carol Havel who retired after 42 years of service. In the patient care area, Morris Hospital is focused on using evidence-based medicine to assure the community is being served with the highest quality of care. The most significant quality activities in 2013 included instituting a re-admission screening on all inpatients which resulted in a reduction in the readmission rate from 13% to 10%, forming core measure teams lead by clinical leaders, improving medication education by providing a pharmacist at the patient bedside, transforming the case management model to one that focuses on effectively orchestrating the patient's progression of care from admission to post-discharge, and launching the transition to electronic progress notes, an important patient care initiative that supports the move to a full electronic medical record. Because an excellent workforce is key to helping us carry out our mission, we are committed to retention of our outstanding staff and ongoing development of leaders as evident through a new nursing preceptor program and continued development of our current and potential future leaders through formal leadership development training. Other significant activities include recognition received from other organizations. This verifies the exem”

“change in fair value of derivative instruments $3,157,331”